Portugal's Online Gambling Revenue Surges to New Heights in Second Quarter

Portugal's online gambling industry has reached another milestone, with revenue climbing to a record €261.8 million in the second quarter of 2024. This achievement marks the eighth consecutive quarter of record-breaking revenue, signaling continued robust growth in the sector.

The latest figures, reported by the Serviço de Regulação e Inspeção de Jogos (SRIJ), narrowly surpassed the previous quarter's record of €260.8 million and represent a 27.2% increase compared to the same period in 2023. This consistent growth reflects the ongoing expansion of the online gambling market in Portugal, though it also brings to light rising concerns over illegal gambling activities.

Online Casino Games Lead the Way

Online casino games were the primary drivers of the revenue surge in Q2 2024, contributing €158.5 million to the total. This represents a significant 29.9% increase from the €122.0 million recorded in Q2 2023, though it was slightly lower than the €160.3 million achieved in the first quarter of this year.

Players wagered a total of €4.37 billion on online casino games during the quarter, a year-on-year increase of 34.7% and a modest rise of 0.4% compared to the previous quarter. Slots dominated the online casino landscape, accounting for 82.3% of all wagers, followed by French roulette at 6.5%, and blackjack at 4.9%. Dice games and poker made up the remainder of the wagers.

In the sports betting sector, online revenue reached €103.3 million, marking a 23.1% increase from Q2 2023 and a 2.8% rise from the €100.6 million reported in Q1 2024. Despite the excitement generated by the Euro 2024 football tournament, which began in the latter part of the quarter, the total amount wagered on sports during Q2 was €462.3 million, a 19.5% decline from Q1. Football remained the most popular sport for betting, accounting for 69.3% of all wagers, with tennis and basketball following at 19.9% and 6.8%, respectively.

Increase in New Registrations and Self-Exclusions

The second quarter of 2024 also saw a rise in the number of new players entering the market, with 287,600 individuals registering for online gambling accounts. However, there were also a significant number of account closures, with 136,800 accounts canceled during the same period. By the end of June 2024, Portugal had over 4.4 million active online gambling accounts.

Self-exclusion also saw an uptick, with 47,300 consumers opting to block themselves from gambling during Q2. This brings the total number of self-excluded players to 256,900 by the end of the quarter. In an effort to combat illegal gambling, the SRIJ issued closure notices to 38 websites operating unlawfully within the country.

While the online gambling market continues to expand, the land-based sector is facing challenges. Revenue from land-based gambling fell to €63.7 million in Q2 2024, a 4.5% decrease compared to the same period last year. Although physical slot machines, which account for 78.4% of all land-based revenue, saw a slight increase of 0.8% to €50.0 million, revenue from other casino games and bingo dropped by 19.9%, totaling €13.8 million. Declines were noted across several traditional casino games, including baccarat, blackjack, and American roulette.

Concerns Over the Expansion of Illegal Gambling

Despite the growth of the legal online gambling market, concerns are mounting over the rise of illegal gambling activities. A recent survey conducted by the Portuguese Online Gambling and Betting Association highlighted the challenges facing the regulated market, revealing that 41% of Portuguese players use unlicensed gambling platforms. This figure rises to 52.1% among younger adults aged 18 to 34.

The association has called attention to the high taxes imposed on licensed operators, including an 8% turnover tax on sports betting and a 25% gross gaming revenue tax on online casino games. These financial pressures, they argue, put licensed operators at a disadvantage when competing with illegal platforms.

In response, the association has filed criminal complaints against social media influencers who promote illegal gambling sites, stressing the need for stricter enforcement and regulation to protect the integrity of the market.

Source:

''Portugal online gambling revenue hits record high in Q2, land-based declines'', igamingbusiness.com, August 19, 2024.

By GamesAndCasino